I'm a Queen Anne Native and Resident and have lived here since I was born in 1968. My family has been on Queen Anne since the 50's. I went to North Queen Anne Elementary (now an alternative daycare), McClure Middle School (Jr. High when I went). I'm assuming you are referring to the EAST side of Aurora Ave N/HWY 99? If you are, this area is mostly comprised of apartments and condos with a few houses. There are a few new restaurants on Dexter Ave N which is the major arterial cutting through the middle not to mention Westlake Ave N. Lyon's grocery is one of the longest running businesses on Dexter. I sold Pasta Freska on Westlake Ave N to the current owner so tell Mike I sent you (I've sold most of the restaurants on Queen Anne too, but my bread and butter is selling residential real estate).
You want to be on top of the hill. FYI-the area south of Mercer St is not Lower Queen Anne (like some people call it) it's called Uptown. Technically Lower Queen Anne would circle the whole perimeter. If you're not on the hill you're not on Queen Anne Hill. Frankly, some Queen Anne residents don't consider anything east of Aurora Ave N/HWY 99 or anything south of Mercer St, Queen Anne hill either. The "boundaries" have been stretched out due to Real Estate Agents and Developers trying to create an image for marketing purposes.
You did not mention the age of your children? If you're going to let them ride a bike in this area (EAST QA) I'd say NO due to all the traffic from the aforementioned arterials. Also there are no parks and playgrounds WITHIN WALKING distance for children. If you love your children, you want to stay west of Aurora Ave N/HWY 99.